Employment growth continues

Employment, as measured by full-time equivalent employees (FTEs), increased 2.5 percent for the June 2008 year, according to the Quarterly Employment Survey (QES) released by Statistics New Zealand today. This compares to growth of 3.5 percent for the March 2008 year. Hours and earnings also recorded increases for the June 2008 year.

The increase in the number of FTEs was driven by growth in full-time employment. For the June 2008 year full-time employment increased by 2.8 percent. The industries that contributed most to the annual increase in employment were manufacturing; health and community services; and transport, storage and communication. Employment in the retail trade industry fell in the June 2008 year.

Total paid hours increased over the last 12 months although growth in hours was not as strong as growth in employment. Seasonally adjusted total paid hours increased 2.0 percent for the June 2008 year and 0.5 percent for the quarter.

Annually, average total hourly earnings increased 5.2 percent as the annual increase in total gross earnings continues to exceed the annual increase in total paid hours.

The Labour Cost Index (LCI), also released today, showed an increase of 3.5 percent for all salary and wage rates (including overtime) for June 2008 year. The latest increase is the largest annual increase since the series began in the June 1992 quarter, surpassing the previous record of 3.4 percent recorded in the March 2008 and December 2007 years.

In the June 2008 quarter, salary and wage rates (including overtime) increased 0.8 percent, following an increase of 0.7 percent recorded in the March 2008 quarter and 1.1 percent recorded in the December 2007 quarter.